Nonprofits in the Franchise Industry

It may surprise you to learn that Nonprofit groups around the country own franchises, like Blimpie Subs and Papa Murphy’s Pizza. Nonprofit groups, in a more recent trend, are purchasing franchises, and using that revenue from the outlets to support their social missions.

For example, Affordable Homes of South Texas, a nonprofit that constructs houses for low-income families, opened a Blimpie sub shop in downtown Weslaco, Texas. Affordable Homes of South Texas turned to exploring new options for funding when there was a drop in federal housing grants earlier last year.

Other charitable organizations view it as an opportunity to train and employ people in their community. The Dale Rogers Training Center, an organization dedicated to providing jobs to over 1,100 people with disabilities annually, recently opened a Papa Murphy’s pizza franchise near the charity’s base in Oklahoma City.

Customarily, national franchise brands have been contracted solely with individuals, but that is certainly changing. According to the recent NY Times article, more than a dozen national chains since last May have sent representatives “to explore franchising opportunities with nonprofit groups in SourceAmerica, a network of 1,300 organizations serving the disabled, at its annual meeting in San Antonio.”

Do nonprofits own a franchise in your area? We would love to hear your comments on this franchise trend!